Chapter 1
Research
in Business
McGraw-Hill/Irwin
Business Research Methods, 10e
Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
1-2
Learning Objectives
Understand . . .
• What business research is and how it differs from
business decision support systems and business
intelligence systems.
• Trends affecting business research and the
emerging hierarchy of business decision makers.
• The distinction between good business research
and research that falls short of professional quality.
• The nature of the research process.
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Why Study Business Research?
Business
research provides
information to
guide business
decisions
Research Should Help
Respond to Change
“Enterprises have long recognized the need
to better sense and respond to business change.
What’s different today is that ubiquitous access
to information and real-time communications
have fostered an ‘always on’ business culture
where decision making has become a ‘just-in-time
process.’”
Business Performance Management Forum
1-4
1-5
Research Should Reduce Risk
The primary
purpose of
research is to
reduce the
level of risk of
a marketing
decision
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Business Research Defined
•A process of determining, acquiring,
analyzing, synthesizing, and disseminating
relevant business data, information, and
insights to decision makers in ways that
mobilize the organization to take
appropriate business actions that,
in turn, maximize business performance
What’s Changing in Business
that Influences Research
New
Research
Perspectives
Information
Overload
Computing
Power &
Speed
Technological
Connectivity
Shifting
Global
Economics
Factors
Battle for
Analytical
Talent
Critical
Scrutiny of
Business
Government
Intervention
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1-8
Computing Power and Speed
Lower-cost
Data
Collection
Integration of
Data
Better
Visualization
Tools
Factors
Real-time
Access
Powerful
Computation
Business Planning Drives Business
Research
Organizational
Mission
Business
Goals
Business
Strategies
Business
Tactics
1-9
1-10
Business Decisions and Research
Häagen-Dazs Tactics
– Super premium
– Dozens of flavors
– Small packages
– Signature colors on
packaging
– Available in franchise
and grocery stores
1-11
Information Sources
Decision Support
Systems
• Numerous elements of
data organized for
retrieval and use in
business decision
making
• Stored and retrieved via
– Intranets
– Extranets
Business Intelligence
Systems
• Ongoing information
collection
• Focused on events,
trends in micro and
macro-environments
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Sources of Business Intelligence
Government/
Regulatory
Competitive
Economic
Demographic
Business
Intelligence
Technological
Cultural/
Social
1-13
Hierarchy of Business Decision Makers
Visionaries
Visionaries
Standardized
Decision Makers
Intuitive Decision Makers
1-14
Minute Main and Business Research
1-15
Eastman Kodak has a world-class research
department
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Research May Not Be Necessary
Can It Pass These Tests?
• Can information be applied to a critical
decision?
• Will the information improve managerial
decision making?
• Are sufficient resources available?
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Information Value Chain
Data collection/
transmission
Data
management
Characteristics
Decision
support systems
Data
interpretation
Models
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The Business Research Process
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Characteristics of Good Research
Clearly defined purpose
Detailed research process
Thoroughly planned design
High ethical standards
Limitations addressed
Adequate analysis
Unambiguous presentation
Conclusions justified
Credentials
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Two Categories of Research
Applied
Basic (Pure)
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Four Types of Studies
Reporting
Descriptive
Explanatory
Predictive
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Key Terms
• Applied research
• Business intelligence
system (BIS)
• Business research
• Control
• Decision support
system
• Descriptive studies
• Explanatory Studies
•
•
•
•
•
Management dilemma
Predictive studies
Pure research
Reporting studies
Return on Investment
(ROI)
• Scientific method
• Strategy
• Tactics
Appendix 1a
How the
Research
Industry Works
McGraw-Hill/Irwin
Business Research Methods, 10e
Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
1-24
Who Conducts Business Research?
Some Organizations Use
Internal Research Sources
1-25
Some Organizations Use
External Research Sources
1-26
1-27
Business Research Firms
1-28
Proprietary Research
Decision Analyst, Inc.
uses Internet-based
concept testing
called Conceptor
to examine new
product concepts
1-29
Syndicated Services
Nielsen Media
Research
provides audience
data for television
programs like
Court TV
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Some Syndicated Data Providers
•
•
•
•
•
•
•
•
AC Nielsen
Scarborough
Millward Brown
Nielsen Media Research
Roper ASW
CSA TMO
Yahoo!
ORC International
• DoubleClick
• Nielsen/NetRatings
• Taylor Nelson Sofres
Intersearch
• J.D. Power Associates
• MediaMark
• Simmon (SMRB)
• BRMB
• Information Resources Inc.
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Specialty Business Research Firms
Methodology
Process
Industry
Participant group
Geographic Region
1-32
Communication Agencies
Sales
Promotion
Advertising
Direct
Business
Public
Relations
Consultants and
Trade Associations
1-33
1-34
Trade Associations
NHRA
CASRO
MRA
ESOMAR
BRA
AMA
WAOBRP
MPA
NAB
1-35
Many Firms Conduct Research
1-36
Key Terms
• Custom Researcher
• Syndicated data provider
• Full-service researcher • Omnibus researcher
• Specialty researcher • Omnibus study
Chapter 1
Addendum
Research
Timeline
McGraw-Hill/Irwin
Business Research Methods, 10e
Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
1-38
Information Revolution
1971
First CATI
survey
conducted
1964
OCR
shows
promise
U.S. DOD
commissions
forerunner of
Internet
1968
Word processing
first demonstrated
1973
UPC bar-code
scanning
introduced
1972
Optical laser
disk revealed
1975
Microsoft
is born
1979
First
VisiCalc
ships
1960
1964
IBM
introduces
model 360
1968
SPSS created
©2008 McGraw-Hill Companies, Inc. All Rights Reserved.
1971
Intel introduces first
microprocessor
1973
Basic ideas of
Internet created
1980
Apple owns
50% of
pc market
1976
Apple I
released
1-39
Information Revolution
1987
First
Internet
survey
1981
IBMPC
released
1993
WWW experiences
3,400X growth
in service traffic
1990s
OCR used for
data entry
2001
Online survey
software widely
available
1994
Greenfield Online
Introduces
online focus group
2003
Wal-Mart commits
To use RFID
2002
Web-conferencing
Software
introduced
2008
1980
1987
IRI conducts
first scanner
tracking study
1991
WWW
developed
©2008 McGraw-Hill Companies, Inc. All Rights Reserved.
1996
Internet
World Exposition
held
2002
High-speed
chip technology
for servers
2007
74.9% in
US have
Internet
access